There is talent. There is capital. Start in .

I AM AN INVESTOR

There is talent. There is capital. Start in Poland. 1 Poland – Country overview

LOCATION

In order to build a modern economy, a comprehensive ecosys- tem of innovations should be created. It would not only enable the transfer, but mainly the development of new technologies, and thus, improved performance. In a long-term perspective, it is work and capital performance that generates welfare and improves the standard of living. The key performance factors are GDP (2016) technological progress, changes in the organisation of work, as well as increased share of tangible and intangible capital in the 469 B$ 12,3 TH$ structure of production factors. GDP total (nominal) GDP per capita Most of Central European economies took advantage of the 1st, 2nd and 3rd industrial revolution only to a limited extent. GDP 3% 40% 64% However, at present they have a great opportunity to use the by sector AGRICULTURE INDUSTRY SERVICES benefit of backwardness and to make a significant step forward, bypassing the risk and taking advantage of development lever- age offered by the 4th industrial revolution. To this end, Cen- tral Europe should dynamically undergo further transformation KLUCZOWE INFORMACJE towards knowledge-based economy to become one of the global innovation centres in the decades to come. This vision ANDRZEJ can only come true by close cooperation of entrepreneurs, the DUDA state, scientists and experts, with the use of investment funds, HEAD OF STATE which form the ecosystem fostering the development of new BEATA technologies and products with global potential. 38 million 312 679 km2 SZYDŁO CAPITAL POPULATION AREA HEAD OF GOVERNMENT Innovation ecosystem A knowledge-based economy cannot develop without cut- POLISH ZLOTY WWW.PAIH.GOV.PL ting-edge ventures, i.e. startups. Compared to the forty OFFICIAL LANGUAGE CURRENCY POLISH INVESTMENT & TRADE AGENCY most economically developed countries in the world, the maturity of Polish is average. Accord- ing to the Deloitte study Diagnosis of startup ecosystem in Source: Eurostat, EIU, World Bank, Oxford Economics, BCG

2 There is talent. There is capital. Start in Poland. INCREASE IN THE SHARE OF CORPORATE 15% R&D EXPENDITURE IN GDP Poland was rated 25th in the World Bank’s Doing Business 2016 ranking

INCREASE IN THE INCOME FROM FOREIGN 15% LICENSES AND PATENTS

INCREASE IN THE NUMBER 8% OF PCT APPLICATIONS st Singapore Poland, the potential for startup development in Poland is 1 considerable. It is estimated that by 2023 the added value generated by startups may amount to PLN 2.2 billion, and the number of created jobs may reach 50,000. nd New Zealand According to the European Innovation Scoreboard 2016 2 report, Poland saw an increase in innovativeness. Source: EIS report 2016

Polish economy has been constantly developing, with good rd Denmark economic conditions encouraging investors to finance inno- 3 vations in Poland.

Sustainable growth of Polish GDP is without precedent in th Europe: during the 13 years of Poland’s membership in the Poland , Polish economy was developing faster than 25 (45th in 2017, the economy of the EU as a whole. 79thin 2009)

According to the latest forecasts of the World Bank, in 2017, as a result of investments and consumption, Polish econom- ic growth accelerated to 3.3% compared to 2.8% in 2016. 26

3,3% France 27 2017 2,8% 2016

There is talent. There is capital. Start in Poland. 3 Success of Polish startups Polish startups Undoubtedly, the best evidence that Polish market is a good The number of global achievements of Polish startups is choice for investors are the startups created in Poland. growing. Their presence on the global map of innovative goods and services is becoming more visible every year. ~ 2700 the number of startups in Poland in 2016 2 years average age of a startup in Poland In 2016 the first Polish startup, became one of the “unicorns” 75% of startups 6.7% product operate on the B2B specialisation: A unicorn – a startup with market value > USD 1 billion. market, of which 50% Electronics/Robotics Poland may become a leader in Europe in the area of innovations. sell their goods or Potential success factors include: services to large enterprises 10.1% product specialisation: ~2,700 Big Data active startups in Poland

Large academic High level of technical Innate IT Persistence background education gene in pursuing goals 13.8% of startups 25 of startups specialise in corporate with regular income software solutions The facts are undisputed: the potential of the Polish ICT doubled the value of their industry positions it among the top global actors in this sales in the last six months sector and as a clear leader in Europe. 12% increase in the number of startups in 22% of startups 1st in Europe Polish developers ranked 1st in Europe Poland 2015 v. 2016 (3rd in the world) according to HackerRank obtained capital from investment funds 26.7 year average age of a Polish developer (global average: 29.6) 10 accelerators under the Scale Up programme Source: Central Statistical Office of Poland, HackerRank, Stackoverflow 6% of startups finance with the funding their operations with amounting to strategic industry-based PLN 60 million Education and age investors OF POLES AGED 2534 HAS COMPLETED HIGHER EDUCATION 40% Source: Central Statistical Office of Poland 7% of startups use 47% of startups financing from accelerators export their products 18 18 5 11 UNIVERSITIES UNIVERSITIES OF UNIVERSITIES OF MEDICAL UNIVERSITIES IN POLAND TECHNOLOGY IN POLAND ECONOMICS IN POLAND IN POLAND Sources: Polish Startups 2016 report by Startup Poland, Polish Agency for Source: Ministry of Science and Higher Education Enterprise Development. Prepared by: PwC

4 There is talent. There is capital. Start in Poland. Investment venue VC funds, EU grants, business angels are the main sources of financial support to be sought by Polish startups in the nearest One half of startups created in Poland are financed solely from future. their own funds.

VENTURE CAPITAL 79% of the capital of Polish startups are own funds; however, 59% a growing number of young innovative companies seek third EU GRANT party financing. Polish startups are opening to investments. 56% 35% BUSINESS ANGEL 79% 18% ACCELERATOR CROWDFUNDING OWN FUNDS 11% 10% NONE LOAN 24% 22% 17% OTHER EU GRANT BUSINESS ANGEL 16% Source: Polish Startups 2016 report

7% 6% 6% 2% What is the cradle of Polish startups? ACCELERATOR STRATEGIC NONE LOAN CROWDFUNDING INDUSTRYBASED According to Polish Startups 2016, most young innovative com- INVESTOR panies are created in Warsaw, Krakow, the Tricity and Poznan. It is also the location of the largest startup communities. Their activity Source: Polish Startups 2016 report can be seen e.g. in many industry conferences, regular meetings (meetups), or seminars (organised e.g. by investment funds). The “born global” trend is not only a trigger for constant devel- opment and definition of one’s project at the international level, but it is also forced by the willingness to find a partner who would allow for the planned global expansion by investing their 3% Szczecin 9% Trójmiasto capital.

2% Białystok ¾ startups in Poland considers 9% Poznań obtaining third party capital 2% Łódź 27% Warszawa Source: Startup Poland 7% Wrocław 2% Lublin What are the sources of financing 2% sought by young innovative companies? 11% Kraków Polish startups understand that financial capital is one of the key development factors. Source: Polish Startups 2016 report

There is talent. There is capital. Start in Poland. 5 Private Equity funds Venture Capital (VC) investments are vital for Private Equity funds. In 2015, they accounted for 61% of total transactions. Poland is the most important market for private equity (PE) funds investing in Central and Eastern Europe. The value of such investments grew from EUR 9.1 million in 2012 to EUR 19.6 million in 2015. 31% Source: KPMG report Private Equity Market in Poland 2016 UPOLAND’S SHARE IN CEE POPULATION, 2015 53% PFR Ventures POLAND’S SHARE IN CEE PE The largest platform in Central and Eastern Europe operating INVESTMENTS, 2015 as a fund of funds (FoF). PFR Ventures offers repayable financ- 35% ing through selected financial intermediaries, such as venture POLAND’S SHARE IN CEE GDP, 2015 capital funds or business angels.

The company established under the Start in Poland programme Source: KPMG report Private Equity Market in Poland 2016 has an investment budget amounting to almost PLN 3 billion. The aim of its operations is to support innovative companies In 2016, the value of such investments in Poland grew by and enterprises at various stages of development, from the over 20% compared to 2015! pre-seed stage, through seed stage, early stage to growth and expansion stage. Private Equity funds

21% 5% Information technologies, Financial services media and communications 4% 18% Energy Industrial production seed PLN 2.8 billion budget of PFR Ventures 14% 3% Retail trade and Construction consumer goods and real property startup expansion 13% 2% Medicine and pharmacy Transport and freight logistics 9% 1% Corporate services Other services acceleration growth

9% Agriculture and food production 1% Other Source: PFR Ventures Źródło: raport KPMG „Rynek private equity w Polsce 2016”

6 There is talent. There is capital. Start in Poland. STARTER BIZNEST CVC KOFFI OPEN INNOVATION seed, incubation, startup seed, incubation, startup startup, growth, expansion growth, expansion incubation, startup, growth

AUM AUM AUM AUM AUM EUR 186m EUR 61m EUR 100m EUR 77m EUR 100m

MAX. FUND COMMITMENT* MAX. FUND COMMITMENT* MAX. FUND COMMITMENT* MAX. FUND COMMITMENT* MAX. FUND COMMITMENT* EUR 7-12m EUR 1.2-7m EUR 20-50m EUR 17-30m EUR 20m

FoF MAX LAVERAGE* FoF MAX LAVERAGE* FoF MAX LAVERAGE* FoF MAX LAVERAGE* FoF MAX LAVERAGE* 80% 96% 50% 50% 60%

SINGLE INV. SIZE SINGLE INV. SIZE SINGLE INV. SIZE SINGLE INV. SIZE SINGLE INV. SIZE up to EUR 0.7m up to EUR 1.0m up to EUR 15m up to EUR 0.6-15m up to EUR 1.2-10m

FIRST INV. MAX. VALUE FIRST INV. MAX. VALUE FIRST INV. MAX. VALUE FIRST INV. MAX. VALUE FIRST INV. MAX. VALUE EUR 0.24m n/a n/a n/a n/a

YEAR OF OFFER SELECTION YEAR OF OFFER SELECTION YEAR OF OFFER SELECTION YEAR OF OFFER SELECTION YEAR OF OFFER SELECTION 2017-2018 2017-2018 Open till 2020 Open till 2020 2017-2018

* Contributes only to 50% of the investment, the other 50% comes from Business Angels

Źródło: PFR Ventures

NCBR NCBR VC The National Centre for Research and Development (NCBR) is a • managed by a consortium of VC3.0 sp. z o.o. and Fin- government agency created to support development of innova- Crea TFI S.A. tions in Poland. NCBR offers assistance at all stages of a project, • funds for investments: PLN 1.1 billion (½ of funds providing its resources to entrepreneurs, originators, universities – private investors)(½ środków - inwestorzy prywatni) or investors. objective: to invest in small and medium-sized enter- NCBR created such funds as BRIdge Alfa, BRIdge Classic, BRIdge prises with technological profile and high development Mentor, BRIdge VC, NCBR CVC, as well as TDJ Pitango Ventures fund. potential

PLN 2 billion total budget for fund investments TDJ Pitagno Ventures • managed by TDJ and Pitango VC fund • commercial VC fund NCBR CVC • budget: PLN 210 million • managed by PFR Ventures and BGK TFI • funds for investments: PLN 900 million (½ NCBR, ½ cor- objective: investments in innovative Polish compa- porate investors) nies from the modern technologies sector, with global • 1st fund of such type in the world development potential.

objective: to create 6–9 CVC funds with capitalisation of PLN 60–100 million A foreign partner may accede to the funds as an investor, but also as an object of investment.

There is talent. There is capital. Start in Poland. 7 R&D centres Special Economic Zones High investment potential, well-educated staff or foreign lan- Poland is situated in the very heart of Europe. Hence a solu- guage fluency are only the few reasons why Poland is a perfect tion to attract potential investors. Special Economic Zones are place to carry out research and development operations. 14 separated administrative units on the territory of Poland. Business operations in those areas can be carried out on pref- In 2016 were introduced tax reliefs in addition to existing erential terms. R&D subsidies – new incentives for foreign investors to locate their businesses in Poland. Broad network of international routes (rail, air, car, maritime) guarantees fast and easy transport. Tax exemptions (income and real property taxes) offer good economic conditions for businesses.

17% 28% POLISH POLISH CENTRES CENTRES

936 212 centres 72% persons 83% FOREIGN FOREIGN CENTRES CENTRES

Słupska SSE Warmińsko -Mazurska SSE Growth of R&D centers of global Pomorska SSE in Poland Suwalska SSE

2010 2017 Kostrzyńsko -Słubicka SSE Łódzka SSE

Legnicka SSE Starachowicka SSE

Tarnobrzeska SSE "EURO-PARK Kamiennogórska WISŁOSAN" Specjalna Strefa Małej Przedsiębiorczości Krakowski Wałbrzyska Park Technologiczny SSE SSE Euro-Park <10 >40 Mielec centers centers Katowicka SSE e.g. Samsung, Nokia, Google, Microsoft, ABB, Volkswagen

Source: Crido 015, PATH

8 There is talent. There is capital. Start in Poland. I RUN A STARTUP

There is talent. There is capital. Start in Poland. 9 IDEA Establishing a firm in Poland in 7 steps You have an idea that will change the world, but you do not You already know that your idea can change the world. It is know how to put it into practice? Your inventions end up time to make it happen. Start by establishing a business! in your desk’s drawer, because you are still unsure whom you should show them to? Make the first step in creating 1. Choose the legal form: a thriving business: start working with top-notch experts • sole proprietorship and mentors, prepare to negotiate with investors, get to • company (partnership, limited liability, joint stock, know your competitors, and learn how to reach out to new ) customers and find key partners. A complete range of pos- sibilities is within reach. 2. Choose the form of taxation: • sole proprietorship – PIT: A good idea »» general accounting principles - 18% or 32% You do not run a business, but have a head full of innova- »» flat tax - 19% tive ideas? Try the Good Idea programme. Get professional »» lump sum income tax support in verifying the marketability of your product, its »» fixed amount tax development, as well as advice on setting up a company or • companies – CIT: raising funds. »» 19% tax - obligation to keep an accounting book

If your idea is positively evaluated by industry experts, you will benefit from mentoring and assistance in one of the 3. Choose a name for your business following areas: 4. Specify the scope of your activity (NACE classification codes) – no pressure here, you can modify it later preparation of documents necessary for the commercialization of your project 5. Specify the address of you business (home, office)

6. Enter your bank account

7. Voila, you have just started a business! preparation of documents you need in order obtain investment from venture capital funds or business angels Before starting a business, check whether you can obtain financing!

For more information visit www.biznes.gov.pl. preparation of documents necessary for the establishment of a company Are you a citizen of a EU Member State other than Poland, but within which you will continue to work you wish to start a company in Poland? No problem: you can on the project do it on the same terms as Polish citizens!

Learn more - go to www.dobrypomysl.pfr.pl.

10 There is talent. There is capital. Start in Poland. Research and development (R&D) Where to establish a business tax credits in Poland? Go for innovation centres!

Who can benefit from tax credits? These are places the greatest number of business where: accelerators, incubators, technology An individual A legal entity parks and other entities supporting the greatest number of startups the development of young, are established and operate; innovative companies come into SOLE PROPRIETORSHIP JOINT STOCK COMPANY, being and operate; LIMITED LIABILITY COMPANY you will have the easiest access to knowledge the majority of VC funds and (conferences, meetings, Note: Those operating within Special Economic business angels operate. Zones are not entitled to tax credits. access to mentors);

What conditions must be met to benefit from tax credits? Where are startup ecosystems developing 1. R&D activities. Incurring eligible costs and clearly indicating fastest in Poland?

them in the records kept. Kraków 2. Eligible costs must not have not been reimbursed in any other Warszawa form. Trójmiasto Poznań

R & D tax credits – amount of tax relief (2017) How to get a work permit? Costs of salaries and Other eligible costs Do you want to work in Poland, but are not a Polish citizen? contributions

Large SMEs Conditions you must meet: enterprises • you need to be residing in Poland legally,

R&D expenses • you need to hold a work permit (unless it is not required). – tax deductible 100 100 100 100 • you need have a temporary residence permit and a work expenses permit, or a temporary residence permit to work in a highly skilled occupation. R&D expenses additional 50 50 50 50 amount deducted Permanent residence – up to 10 years from the tax base Temporary residence – up to 3 years

Rate of CIT (%) 15/19 19 Please note that the validity of residence permits Tax relief (PLN) 22,5/28,5 22,5/28,5 22,5/28,5 24,7 in Poland is not extended automatically!

Incentive effect 7,5/9,5 7,5/9,5 7,5/9,5 5,7 For more information visit: www.udsc.gov.pl.

There is talent. There is capital. Start in Poland. 11 Inwestycje w B+R Inwestycje podatek Bieżący uzyskania Koszt X 19% przychodów Ulga B+R x 19% podatkowa Korzyść

1000 tyś zł 1000 tyś zł 19 tyś zł 9,5 tyś zł 28,5 tyś zł Applications along with supporting documents shall be filed at Expanding one’s knowledge is the basis for the development the relevant Voivodeship Office. of any startup. This assertion is supported by hard data.

Decisions are normally communicated within a month, and in particularly complicated cases no later than within two months 42% OF START UPS NEED BUSINESS CONTACTS from the date on which documents were submitted.

NEED SPECIALIST KNOWLEDGE Interesting fact: Are you a citizen of Armenia, Belarus, Georgia, 14% Moldova, Russia or Ukraine? You can work in Poland without a Source: Fundacja Startup Poland work permit!

Note that this permit waiver is valid for up to 6 months within a Where do startups acquire period of 12 consecutive months. Read about the Declaration their knowledge? of the intention to entrust a job to a foreigner. MEETINGS For more information visit: www.udsc.gov.pl. 41% 37% PARTICIPATION IN A CONTEST How do I apply for a visa? MENTORING Are you a non-EU citizen and wish to create innovations in 34% Poland? Remember that you need to hold a visa. 32% PARTICIPATION IN EVENTS

INCUBATOR Examples of purposes for which visas are 26% issued: 24% ACCELERATOR tourism training 11% LEARNING business research 31% OTHER studies Źródło: raport „Polskie Startupy 2016”

Szczegółowe informacje znajdziesz na stronie: www.migrant.info.pl Incubators This solution is aimed at innovative entrepreneurs. Over a period of Note: Visas are issued exclusively by consuls of the up to several years, it provides them with support during the phase Republic of Poland of building, testing and developing pioneering services and products.

Development Access to knowledge and the possibility to share experiences with other entrepreneurs are as important for the develop- ment of your project as financial resources or ... the innovative idea itself. substantive legal financial infrastructure support assistance support support

12 There is talent. There is capital. Start in Poland. Polish network of incubators Technological parks Technological parks - just as incubators and accelerators - are 22 54 46 created in order support the development of innovative busi- nesses. They provide diverse forms of assistance, inter alia Technological academic business access to working space or substantive help. incubators incubators (AIP) incubators

What sets them apart from accelerators or incubators are their Source: Stowarzyszenie Organizatorów Ośrodków Innowacji i Przedsiębiorczości, AIP strong ties with the academic community.

Accelerators Technological parks operate at the interface between R&D and Accelerators facilitate cooperation between young, innovative business. companies and corporations or potential investors. Advantages are mutual. Startups are provided with appropriate develop- 35 Number of technological parks in Poland in 2017 ment tools (such as mentoring, business relationships, access to the infrastructure of large companies) and with financial sup- port. In turn, accelerator partners gain access to innovative technologies. It’s a win-win situation.

The majority of parks are located One third of technology parks in Wielkopolskie, Slaskie and operate in large cities with Start Platforms in Eastern Poland Dolnoslaskie voivodeships. a population between 300,000 and 800,000.

Source: PARP, SOOiP Elbląg Suwałki

Ełk Startup communities and organizations Olsztyn Łomża The startup environment is an ecosystem that focuses on gain- ing valuable knowledge and establishing strategic business Białystok relationships.

Lublin

Kielce Świdnik Tarnobrzeg Conferences Communities

Stalowa Wola Hub of Talents InfoShare Aula Polska leader: Bialystok Science and Technology Park Rzeszów Wolves Summit Geek Girls Carrots TechnoparkBiznesHub leader: Kielce Technology Park CEE Impact Polska Przedsiębiorcza

Connect European Startup Days Startup Poland Lublin Science and Technology Park Startup Hub Poland other idea incubation places

Source: platformystartowe.gov, startupinsider.pl

There is talent. There is capital. Start in Poland. 13 Education 2.Foreign Trade Offices (Zagraniczne Biura Handlowe, ZBH): • a network of agencies focused on supporting exports Innovative ideas brew in the minds of young entrepreneurs and Polish entrepreneurs in foreign markets; already at universities. • 9 Foreign Trade Offices are currently operating world- wide, with as many as 70 to be established in the future Higher education in Poland as part of the network; • operating with the support of the Polish Development 18 18 5 11 Fund, Foreign Trade Offices enable entrepreneurs to reach markets where development potential, as well as universities technical economic medical export and investment opportunities are greatest; schools schools schools • the network of Offices provides, inter alia, location sup- Source: Ministry of Science and Higher Education port services described above; it also shares market information, supports companies in the process of net- IT was the most popular field of study in the academic year working with local business representatives and insti- 2016/2017 in Poland. tutions, and organizes training for Polish and foreign entities. number of applications 38 285 for IT studies More information: www.paih.gov.pl/o_agencji/Zagraniczne_Biura_Handlowe. Source: Ministry of Science and Higher Education Technical schools are currently the most popular education institutions in Poland. Among them, Warsaw University of Technology, Poznan University of Technology and Gdansk Uni- FORIEGN TRADE OFFICES (ZBH) versity of Technology rank highest. Source: Ministry of Science and Higher Education

Expansion abroad 1. Location consulting: Polish Investment and Trade Agency (Polska Agencja Inwestycji SAN FRANCISCO BUDAPEST i Handlu, PAIH) provides location assistance to Polish exporters. TORONTO SHANGHAI TEHERAN For a startup HO CHI MINH CITY Individual location visit: MEXICO • organization of a 3-day visit to the country in which the NAIROBI SINGAPORE firm is planning to operate; • reference meetings with experts and local entrepreneurs; • information about local grants, good market entry practic- es and best business locations; • the visit is summarized in a report drawn up by PAIH; • travel costs are covered by the startup. More information: www.paih.gov.pl.

14 There is talent. There is capital. Start in Poland. 3. GO programmes way to success in business is not as simple as it may seem, and Six programmes aimed at entrepreneurs interested in expand- what we see is no more than the top of the iceberg. Success ing their business activity abroad: demands hard work, advanced skills and excellent competenc- Go Africa, Go Arctic, Go Asean, Go China, Go India, Go Iran es, motivation and determination of the team and, above all, skilfulness in the acquisition of funds for business develop- PAIH experts responsible for the programme: ment. Obtaining financing for a startup is a key challenge facing • analyse business needs and business profile; young entrepreneurs. • develop a tailor-made market entry strategy; • provide all necessary administrative and legal information; • explain the specificity of local distribution channels; • provide valuable local contacts; • assist in the verification of potential business partners; 50% 50% • prepare companies for trade fairs. of startups in of startups More information: www.eksportuj.gov.pl. Poland resort to relies on its external sources own resources 4. IT/ICT Promotion Programme: of funding. • The Programme is implemented by the Polish Agency for Enterprise Development (PAED) to promote the Polish IT/ ICT sector; Source: “Polskie Startupy 2016” Report • The Programme shall run until the end of June 2019; • Organization of information and promotion stands at trade A VC fund, an accelerator, or perhaps a loan? Which sources fairs and conferences; of external financing do Polish startups resort to? See chart • Free promotion for IT/ICT companies; on page 5. • Programme: 14 events held in 8 countries (the US, Japan, Korea, Brazil, Germany, Spain, Portugal, Austria); nearly 100 At present, a wide variety of support tools are available to start- companies have already benefited from this form of pro- ups in Poland, both in the form of non-repayable grants and motion. indirect support, supplied to innovative companies inter alia through accelerators or investment funds. Their goal is to pro- A complete list of events can be found on the Export Promotion Portal: vide funding for the development of a product or a technology www.ict.trade.gov.pl.. created by a startup, and for the company’s development and the expansion of its activities. Do you want to learn more? Contact the programme office: [email protected]. PFR Ventures In the years to come, one of the main forms of support for Financing the development of the startup ecosystem in Poland will be In recent years, startups have mushroomed throughout tools dedicated to investment funds, which will be respon- Poland. Incredible success stories of young entrepreneurs who sible for capital investments in young, innovative compa- have created a multi-million dollar business by putting into nies. Funds shall be managed and allocated mainly by the action a simple idea they came up with over a cup of coffee National Centre for Research and Development and PFR abound in the media. However, in spite of appearances, the Ventures (operating within the Polish Development Fund)

There is talent. There is capital. Start in Poland. 15 largest Venture Capital investment platform in Central and East- European Funds ern Europe In 2014-2020, Poland shall receive as much as EUR 82.5 bil- • 5 closed-end investment funds: PFR Starter FIZ, PFR lion from the European Union! Biznest FIZ, PFR Open Innovation FIZ, PFR NCBR CVC and PFR KOFFI FIZ; • financing of startups at various stages of development: EUR pre-seed, seed, early stage, growth and expansion phase; 82.5 billion • amount of financing: from PLN 200,000 up to PLN 800

million; What can EU funds be used for? • repayable financing through selected financial inter- mediaries, such as venture capital funds or business angels.

raising capital networking Business angels In order to obtain funds for the development of a project, an research entrepreneur may also approach a so-called business angel.

product or service company establishment One in tree startups in Poland (35%) plans to obtain financ- development and development ing from business angels. Nearly one fifth (17%) of them have already benefited from this source of support. National Centre for Research Source: “Startupy w Polsce 2016” Report and Development Funds The National Centre for Research and Development (NCRD) Who is a business angel? actively supports innovative projects in Poland. All entrepre- neurs can apply for financial support from the NCRD, regardless of the stage of development of their product or service.

an experienced entrepreneur NCBR’s services / R&D Projects Grants for: an investor • industrial research and experimental development looks for innovative products and services • only for experimental development work chooses the project he/she wishes to • friendly and transparent procedures – online applications invest in • maximum amount of financing: EUR 20 million in return for the investment, he/she becomes a stockholder in the startup “Fast Track” financing, substantive support Provides and business contacts • decision about co-financing issued in as little as 60 days • financing of up to 80% of the project value

Note! In 2017, under “Fast Track” NCBR supported innovative entre- it is not easy to find them, they operate locally, there are not many of them, a single angel business invests in a small number of projects preneurs with a total of nearly PLN 3 billion PLN!

16 There is talent. There is capital. Start in Poland. BRIdge Alfa: First Business – Support at the Start • co-financing for seed funds and startups “First Business – Support at the Start” is a programme aimed at: • 19 vehicles, the so-called Alfs in 2017 startup support: • co-financing of up to PLN 1 million • comprehensive business support

graduates of colleges last-year university the unemployed The operating budget of 19 Alfs in 2017 reached a total of and universities students PLN 455 million What is offered?

Sector programmes 12 programmes dedicated to specific sectors of the economy: • GAMEINN – video games industry • IUSER – sector of intelligent devices, energy generation Low-interest loans: Free consulting systems and the management of systems and compo- to start a business and training nents within the dispersed energy industry to create a job • INNOMOTO – automotive industry • INNOSBZ – manufacturing of unmanned systems • InnoNeuroPharm – pharmaceutical sector, including neu- 14 days Quick processing of applications – up to 14 working days romedicine • INNOSTAL –steel industry Foreigners can also apply for a loan! (a permanent residence card required) • Innovative Recycling – non-ferrous metal and wood recy- cling Program implemented by Bank Gospodarstwa Krajowego. • INNOTABOR – rolling stock sector www.wsparciewstarcie.bgk.pl • INNOCHEM – chemical industry • PBSE – power generation sector • INNOTEXTILE – textile sector Crowdfunding • WoodINN – wood and furniture sector One in ten startups in Poland considers crowdfunding as a method of obtaining external financing. The amount of allocations in calls for proposals announced (Source: “Polskie Startupy 2016” Report) thus far totals PLN 1.9 billion! What is it? Crowdfunding is the financial support provided by the Inter- “Application projects” + „ Regional Research Agendas” net community in exchange for certain benefits. • aimed at scientific and industrial consortia (scientific units + entrepreneurs) What benefits can an Internet user obtain in return for finan- cial support? The total budget for calls for proposals in 2017 is PLN • stocks in the company, 540 million! • a discount on products, • a gadget.

There is talent. There is capital. Start in Poland. 17 Where to begin? Scale Up Accelerators Crowdfunding is managed through dedicated crowdfunding The largest acceleration project in Poland, developed within the platforms. Start in Poland programme. It involves innovative startups, top accelerators and corporations (including state-owned companies). What can crowdfunding provide you with?

Scale Up Testing of the idea state-owned companies venture First customers capital funds Reach large startups corporations Financial capital seed funds research units Start In Poland government programme Start In Poland Programme – a package of instruments for inno- Scale Up vative firms. competition 61 Nearly PLN 3 billion from the Start In Poland programme run by accelerators competing the Ministry of Economic Development together with the Inno- – 10 winners (selected) vation Council will be invested in the development of startups in

Poland over the next 6 years. Firms will receive support not only PLN 6 mln budget objective in the incubation and acceleration phase, but also during further to create innovative solutions phases of development and international expansion. It is the and commercialize them in largest programme of this kind in Central and Eastern Europe. >200 large corporations and support state-owned companies for startups The programme is to strengthen and boost the Polish eco- system of startups through creating favourable conditions for young, innovative companies, encouraging foreign entities to each winning accelerator: Advantages of startups: start up and develop their businesses in Poland, and facilitating project duration: 15 months financial support up to PLN 250,000 access to capital and internationalization to the most promising budget of each accelerator: PLN 6 million support of mentors strategic partner (, networking entrepreneurs. state-owned company) access to development and research each accelerator will support a minimum infrastructure CONSOLIDATION OF INSTRUMENTS of 20 startups possibility to gain experience maximum amount of funding for access to business partners a startup: PLN 250,000 PLN 1.05 PLN 60 million PLN 1.75 and investors duration of a single round of the billion (pilot run) billion promotion of one’s innovation acceleration programme: 3-6 months (product, service) access to normally unavailable Pre-seed, Seed phase Acceleration phase Development phase resources Polish Development Fund Polish Development Fund Polish Development Fund possibility of testing innovations / PFR Ventures / PARP / PFR Ventures under specific conditions

18 There is talent. There is capital. Start in Poland. IDEA GLOBAL ACCELERATOR

AREAS geoinformation technologies, robotics, transport, medicine OF INTEREST

INDUSTRIAL INNOVATIONS ACCELERATOR INDUSTRYLAB

AREAS energy industry, natural resources, production of metal structures OF INTEREST and parts of structures, industrial processes

GammaRebels

AREAS geoinformation technologies, sensors, robotics OF INTEREST

HUGE THING

AREAS fin-tech OF INTEREST

IMPACT POLAND

AREAS agri-food sector, healthcare OF INTEREST

MIT ENTERPRISE FORUM POLAND

AREAS fin-tech, energy industry, natural resources, health OF INTEREST

PILOT MAKER

AREAS energy industry, company management processes, food, OF INTEREST smart construction, sensors, electronics and robotics

ScaleUP KPT

AREAS IoT, smart cities OF INTEREST

IDEA GLOBAL ACCELERATOR SPACE3AC INTERMODAL TRANSPORTATION

AREAS AREAS geoinformation technologies, robotics, transport, medicine space sector, maritime transport OF INTEREST OF INTEREST

INDUSTRIAL INNOVATIONS ACCELERATOR INDUSTRYLAB STARTUP SPARK

AREAS AREAS transport solutions, material engineering, energy industry, natural resources, production of metal structures OF INTEREST OF INTEREST smart information technologies, robotics, construction sector and parts of structures, industrial processes

GammaRebels PFR Ventures – fund of funds It is the largest platform operating as a fund of funds (FoF) AREAS geoinformation technologies, sensors, robotics in Central-Eastern Europe. PFR Ventures provides repayable OF INTEREST funding by selected financial intermediaries, such as venture capital funds or business angels. They search for promising HUGE THING businesses and invest in the most interesting startups. See PFR Venture programmes on page 7.

AREAS fin-tech OF INTEREST Polska Prize Polska Prize is a programme that encourages innovative IMPACT POLAND entrepreneurs to create ground-breaking products and servi- ces in Poland and attracts new companies and startups from AREAS agri-food sector, healthcare non-EU countries. OF INTEREST

Within the framework of the Polish Prize programme, MIT ENTERPRISE FORUM POLAND an entrepreneur can benefit from temporary assistance from the Polish state.

AREAS fin-tech, energy industry, natural resources, health OF INTEREST

PILOT MAKER

support in setting up/ mentoring assistance in establishing moving a business to Poland business contacts AREAS energy industry, company management processes, food, OF INTEREST smart construction, sensors, electronics and robotics

ScaleUP KPT

AREAS IoT, smart cities help in finding an investor assistance in the process of obtaining OF INTEREST a visa and legalizing one’s stay in Poland

SPACE3AC INTERMODAL TRANSPORTATION There is talent. There is capital. Start in Poland. 19

AREAS space sector, maritime transport OF INTEREST

STARTUP SPARK

AREAS transport solutions, material engineering, OF INTEREST smart information technologies, robotics, construction sector Startup.pfr.pl - search engine for programmes tailored to makes it much easier to navigate around the Polish ecosystem your firm’s needs of innovation.

Startup.pfr.pl is a one-stop online communication platform for Whether your project is no more than an idea and you want to startups and innovative SME and high-tech companies that test its marketability, you are looking for an investor or another seek capital and support under government-led programmes. source of financing, or considering an expansion of your busi- The platform facilitates the selection between multiple pro- ness onto foreign markets, startup.pfr.com is an answer to grammes for startups at every stage of development. The your needs. website contains also an innovation ecosystem map, which

Take advantage of PFR Group’s services for young, innovative firms. EXPANSION Test your idea, find an investor, reach new clients or venture an expansion onto a foreign market. DEVELOPMENT

IDEA

I need funding I have a business I have a working idea product

I wish to enter I have a solution I have foreign markets for a large a prototype company

Find a programme for yourself. Go to: www.startup.pfr.pl.

20 There is talent. There is capital. Start in Poland. Publisher: Ministry of Economic Development Pl. Trzech Krzyży 3/5, 00-507 Warszawa

www.mr.gov.pl/en www.FunduszeEuropejskie.gov.pl/en OF ECONOMIC

Free copy ISBN 978-83-7610-628-1